Contracting Method and Award

Contracting Method and Award

Introduction

This paper discusses an analysis of the difference between sealed bidding, simplified acquisition, and negotiated contracting based on FAR standards and the needs and peculiarities of procurement contract from a third party. In fact, the landscape of acquiring government contracts has been moving towards the trend of negotiated contracts. Negotiated contracts have actually become a norm for government procurements, unless for certain occasions where sealed bidding is deem necessary.

Discussion

Sealed Bidding

Sealed bidding is the traditional mode of awarding contracts by the government. The contractor with the lowest bid is awarded the contract. Sealed bidding is utilized in the following circumstances where competition is likely, where the purchase description is sufficient, there is sufficient time to issue invitations and receive bids, and there is no need to hold discussion and expect a fixed price. The sealed bid contains no restriction to dollar amount (Zullo 2006).

In the context of sealed bidding procedures, contractors are asked to propose a price and sometimes even make a brochure or flyer describing their product or service. However, a written proposal is not required. In rare cases, it requires contractors to provide a sample of the product with the bid. The sealed tender is designed to be objective, and unbiased by the personal views of the evaluator. The first stage comprises of obtaining technical proposals. In the second stage, contractors whose technical proposal was accepted at the first stage are invited to tender based on their individual proposal. The contract is then awarded to the lowest bidder under the same procedures as for the sealed bid.

Contracts in Sealed bid are awarded to the lowest bidder whose bid price is fair and reasonable, and whose bid meets the requirements of the federal government. Factors determining the selection of the lowest bidder include price related factors, such as transportation costs or expenses incurred by awarding contracts to multiple vendors instead of just one.

Simplified Acquisition

Simplified acquisitions include simplified procedures that promote cost economy, efficiency and reduction of costs in contracting and avoid unnecessary burdens for agencies and contractors. This mode of contracting is usually followed for smaller dollar buys by the government (Marvel & Marvel 2008).

The procedures for simplified acquisition include:

Verbal requests for quotations from a few suppliers: Verbal, written or electronic solicitation usually results in the issuance of a purchase order to the successful contractor. A contract is characterized by a written and signed approval by the contracting officer

Issuance of orders on agreements: An order on a blanket purchase agreement may take the form of a simple "call", which is verbal or it can be transcribed into an acceptable form to both parties.

Normalized form 44: A standard form 44 is an order form that is for purchases of supplies and non-personal services performed on site at the counter, or in remote areas. It is a versatile form of contract, which can serve as a good control for receiving reports, invoices and vouchers. It can be used in the following scenarios, when the purchase ...